How to use this ROI calculator
Enter the amount you invested, the amount you got back and the length of the investment, then press Calculate. The amount returned is everything you received at the end, including your original money, not only the profit. Describe the length either in years, such as 2.5, or switch to dates and let the page count the elapsed days. The result shows your gain or loss in currency, the total ROI, the annualized ROI and the length that was used.
The page opens with an example of 1,000 invested and 2,000 returned over 2.5 years, which is a gain of 1,000, a total ROI of 100.00% and an annualized ROI of about 31.95%. Edit any field and the old figures are hidden until you calculate again, so what you read always matches the form. Reset restores the example. Everything is calculated in your browser, and nothing you enter is stored or sent.
ROI formula: proceeds versus profit
Return on investment compares what an investment produced with what it cost. Subtract the amount invested from the amount returned to get the gain, divide the gain by the amount invested, and multiply by 100. In one line, ROI = (returned − invested) ÷ invested × 100. A positive result is a gain, a negative result is a loss, and zero means you received exactly what you put in. Because the formula divides by the amount invested, that amount has to be above zero.
What belongs in invested and returned amounts
Use the same basis for both numbers. If you paid a 100 fee to buy, include it in the amount invested. If a fee was taken when you sold, subtract it from the amount returned. This page has no fee fields and does not guess at them, so the result is only as complete as the figures you type. As an example, investing 10,000 and receiving 15,000 gives a profit of 5,000 and an ROI of 50%. The returned amount of 15,000 is not the profit; the profit is the 5,000 left after the original 10,000 is set aside.
Total ROI versus annualized return
Total ROI says how much an investment grew but not how long it took. A 50% gain in six months is a very different result from a 50% gain in ten years. Annualized ROI converts the total result into the constant yearly growth rate that would produce the same ratio over the same time. The formula is annualized = (returned ÷ invested)^(1 ÷ years) − 1. It is not the total ROI divided by the number of years, because yearly growth compounds on a larger base each year.
Worked example over two years
Invest 10,000 and receive 15,000 after two years. The total ROI is 50%. The annualized ROI is 1.5^(1/2) − 1 = 22.4745%. You can check it: growing at 22.4745% a year for two years multiplies the money by 1.2247² = 1.5. Dividing 50% by two years would give 25%, which overstates the yearly rate, because the second year earns on a balance that is already larger.
| Length | Total ROI | Annualized ROI |
|---|---|---|
| 1 year | 50.0000% | 50.0000% |
| 2 years | 50.0000% | 22.4745% |
| 5 years | 50.0000% | 8.4472% |
The longer the same total gain takes, the lower the yearly rate it represents. That is why a total ROI on its own is a poor way to compare two investments held for different lengths of time.
Calculate ROI using dates
Choose dates when you know when you bought and when you sold. The calculator counts the calendar days between the two dates, leaving out the start day itself, and divides by 365 to get years. This is an Actual/365 Fixed convention. It means a period that includes February 29 is slightly longer than one year: from 1 January 2024 to 1 January 2025 is 366 days, or 1.002740 years, so a 1,000 investment that returns 1,100 shows an annualized ROI of 9.9714% instead of 10%. Other tools may count days differently, and the page does not claim that every lender or broker uses this rule.
Losses, risk and cash-flow limitations
ROI works for losses too. Investing 10,000 and getting back 7,500 after two years is a total ROI of -25% and an annualized ROI of -13.3975%. Getting back nothing is a -100% total loss. The results are shown as signed numbers and in words, so a loss is never conveyed by colour alone.
Because ROI divides by what you put in, the same dollar loss looks different at different sizes of investment. Losing 2,500 on 10,000 is -25%, while losing 2,500 on 50,000 is -5%. The annualized figure for a loss is negative too, and it shows the steady yearly rate of decline that would take the money from the starting amount to the final amount.
The model has one initial outlay and one final amount. It cannot place deposits, dividends or withdrawals that happen in between, and collapsing them into the final amount distorts the timing. If money moved during the holding period, analyse periodic cash flows instead. To see where regular saving could lead, project future balances with contributions. An annualized ROI describes a past result at a constant rate. It is not a forecast, and it ignores tax, inflation and the risk you took to earn it.
ROI calculator questions
How do I calculate ROI?
Subtract the amount invested from the amount returned, divide by the amount invested and multiply by 100. For 10,000 invested and 15,000 returned, that is 5,000 ÷ 10,000 × 100 = 50%. Use the same basis for both amounts, with any fees you paid included on the way in and any fees taken on the way out already deducted.
Is the returned amount the same as profit?
No. The returned amount includes your original money. The profit is the returned amount minus the amount invested, so enter the full amount you received at the end. If you type only the profit in the returned field, the calculator will show a large loss, because it treats that smaller number as everything you got back.
Why is annualized ROI different from total ROI?
Annualized ROI is the constant yearly growth rate that produces the same total ratio over the stated time. It is not the total ROI divided by the years, because growth compounds.
Can ROI be negative?
Yes. If the amount returned is below the amount invested, the result is a loss. A returned amount of zero is a 100% loss, and the page shows it as −100% for both the total and the annualized figure.
Can I include monthly deposits?
This model has one initial outlay and one final amount. For deposits whose timing matters, use a cash-flow tool such as the one linked above.
Related next steps
If the investment is a property, model rental income and sale proceeds to see how rent, costs and a final sale fit together. For savings that grow with regular contributions, project future balances over the years you choose, and compare the result with the return you just measured.